America Is Going Broke… and Nobody Cares

(shutterstock)

 

After having sided with the Democrats on the debt ceiling, he went back to the swamp to resolve the “Dreamer” issue — the 800,000 children who arrived in the U.S. as undocumented migrants and were allowed to temporarily stay legally in the country.

Then, over the weekend, it was reported that the administration wanted to get back on the Paris climate change agreement bandwagon.

The White House denies it, but it’s now clear that Mr. Trump aims to be a whole lot less disruptive than he promised to be.

And now, with the floodgates open, the U.S. national debt has surged over $20 trillion.

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Venezuela Publishes Oil Prices in Chinese Yuan, Snubbing the ‘Tyranny of the Dollar’

 

Could this trend lead to the erosion of the dollar’s reserve-currency status?

On September 15, Venezuela began to publish prices for its oil in the Chinese yuan rather than in United States dollars, following President Nicolás Maduro’s promise earlier in the month to rid the South American country’s economy of the “tyranny of the dollar.” News emerged on September 13 that Venezuela was telling oil traders that it will stop receiving or sending payments in dollars.

The Venezuelan Oil Ministry published a statement about the decision to publish prices in yuan, saying, “This format is the result of the announcement made on September 7 by the president [Maduro] … that Venezuela will implement new strategies to free the country from the tyranny of the dollar.”

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EU will make sure Brexit deal is NEGATIVE for Britain – ex-German envoy’s shock admission

DavidDavis_Germandiplomat

Thomas Matussek said Britain would not gain from leaving the European Union [GETTY•DW NEWS]

A GERMAN diplomat lambasted ‘hard’ Brexiteers who think Britain can gain from leaving the European Union, saying Brussels will make sure the move is negative.

Thomas Matussek, former German Ambassador to the UK, said the Brexit divorce bill would be “considerable” and transitional period “long”.

Speaking on the Today programme, on BBC Radio 4, Mr Matussek said any positives for the UK on leaving the bloc would “encourage other” member states rot follow Britain out. Continue reading

“This Is Where The Next Financial Crisis Will Come From” – Deutsche Bank

 

In an extensive, must-read report published on Monday by Deutsche Bank’s Jim Reid, the credit strategist unveiled an extensive analysis of the “Next Financial Crisis”, and specifically what may cause it, when it may happen, and how the world could respond assuming it still has means to counteract the next economic and financial crash.

In our first take on the report yesterday, we showed one key aspect of the “crash” calculus: between bonds and stocks, global asset prices are the most elevated they have ever been. Continue reading

Putin Orders End To US Dollar Trade At Russian Seaports

The commercial sea port of Novorossiysk

 

Whether in response to rising scorching tensions with the US, or simply to provide support for the ruble, on Tuesday Russian President Vladimir Putin instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, RT reported citing the Kremlin website. Continue reading

The World Is Creeping Toward De-Dollarization

The issue of when a global reserve currency begins or ends is not an exact science. There are no press releases announcing it, and neither are there big international conferences that end with the signing of treaties and a photo shoot. Nevertheless we can say with confidence that the reign of every world reserve currency has to come to and end at some point in time. During a changeover from one global currency to another, gold (and to a lesser extent silver) has always played a decisive role. Central banks and governments have long been aware that the dollar has a sell-by date as a reserve currency. But it has taken until now for the subject to be discussed openly. The fact that the issue has been on the radar of a powerful bank like JP Morgan for at least five years, should give one pause. Questions regarding the global reserve currency are not exactly discussed on CNBC every day. Most mainstream economists avoid the topic like the plague. The issue is too politically charged. However, that doesn’t make it any less important for investors to look for answers. On the contrary. The following questions need to be asked: What indications are there that the world is turning its back on the US dollar? And what are the clues that gold’s role could be strengthened in a new system? Continue reading

Global Debt Bubble Understated By $13 Trillion Warn BIS

 

– Global debt bubble may be understated by $13 trillion: BIS
– ‘Central banks central bank’ warns enormous liabilities have accrued in FX swaps, currency swaps & ‘forwards’
– Risk of new liquidity crunch and global debt crisis
– “The debt remains obscured from view…” warn BIS

Global debt may be under-reported by around $13 trillion because traditional accounting practices exclude foreign exchange derivatives used to hedge international trade and foreign currency bonds, the BIS said on Sunday. Continue reading

A “Financial H-Bomb” Has Exploded

 

Somebody exploded an H-bomb last week, and it wasn’t North Korea. It was the U.S.

This was not a kinetic H-bomb, the kind that leaves a mushroom cloud.

It was a financial H-bomb. Continue reading

Jim Rogers Warns “If Trump Starts A Trade War With China, It Will End US Hegemony”

This is exactly what Global Geopolitics mentioned just a five days ago. The tables have turned on the global playing field and the traditional options once thought to be useful to use against China will now backfire. America will now have to get more creative to once again get ahead in controlling the narrative when it comes to using leverage against its adversaries.

Adding to this, China is likely waiting for such a move to happen, which will benefit the nation in numerous ways:

  • China is a master in state propaganda, will successfully claim it’s the victim of a U.S. economic attack and rally support throughout the nation.
  • China, through provocation, will have produced a reason to retaliate. The trade war begins.
  • Retaliation will be successful due to the weakening of the U.S. positions and strengthening of Chinese leverage. World-wide, this will cause people and nations to question America’s ability to act and standing as the lone global superpower. If the Dollar goes down, the U.S. goes down with it.

 

 

Following Treasury Secretary Mnuchin’s threat that the US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea:

“If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful.”

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Trump blocks sale of U.S. tech firm to China

 

Trump’s order stopped the proposed $1.3 billion sale of Lattice Semiconductor Corp. to Canyon Bridge Capital Partners, which the White House described as a “Chinese corporation owned by Chinese state-owned entities that manages industrial investments and venture capital.” Continue reading

Russia, China Playing Major Role in Keeping Venezuela Afloat

Venezuelan President Nicolas Maduro / Getty Images

 

The countries ‘have provided capital, goods, services, and political backing’

Russia and China have played a major role in keeping the dictatorial Maduro regime in Venezuela afloat, according to expert testimony before the House Foreign Affairs Committee Wednesday.

Evan Ellis, a senior associate at the Center for Strategic and International Studies and a professor at the U.S. Army War College, appeared before the Western Hemisphere subcommittee of the Foreign Affairs Committee for a hearing on the malicious influence of state and criminal actors in the Latin American nation’s ongoing breakdown.

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Oil Rich Venezuela Stops Accepting Dollars

Source: The Burning Platform

 

  • President Maduro ‘ Venezuela will create a basket of currencies to free us from the dollar,”
  • Oil traders ordered to stop accepting U.S. dollar in exchange for crude oil
  • Order comes following calls from Russia and China to find alternatives to current reserve system
  • U.S. Dollar accounts for two-thirds of global trade
  • Venezuela has over ten-times more oil than United States
  • Super powers are gradually turning to gold to avoid using world’s main reserve currency
  • Are we seeing the beginning of the end for the U.S. dollar?

The oil-rich country of Venezuela has stopped accepting the U.S. Dollar as payment for oil.

Last week President Maduro warned that the country would this week ‘free’ itself from the US dollar. Continue reading

China’s New Gold-Backed Oil Benchmark to Deal Blow to U.S. Dollar

ISTOCK.COM/SELENSERGEN

 

New financial instrument gives oil-exporting nations their long-sought alternative to the petrodollar.

China will soon introduce a crude oil futures contract denominated in yuan and convertible into gold, the Nikkei Asian Review reported on September 1. Analysts say that since China is the world’s largest oil importer, the move could deal a major blow to the global influence of the United States dollar.

The contract would allow oil exporting nations such as Russia, Iran and Venezuela to conduct sales in yuan, instead of in U.S. dollars, and to then change the yuan into gold on both the Hong Kong and Shanghai exchanges. This would also allow these countries that often fall afoul of American foreign policy to circumvent dollar-based U.S. sanctions.

The Chinese government has been developing the gold-backed futures contract for years, and Oilprice.com reports that it is expected to launch this year. It will be China’s first commodities futures contract available to foreign entities, and analysts expect many oil-exporting nations and firms to find it appealing. Continue reading

Former BIS Chief Economist Warns “More Dangers Now Than In 2007”

Bloomberg

 

Having warned in the past that “the system is dangerously unacnhored,” former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation “looks very similar to 2008,” adding that OECD sees “more dangers” today than in 2007. Continue reading